Since 6 April 2007, millions of consumers have entered into car finance agreements when purchasing vehicles from dealerships like Pendragon. The period up to 1 November 2024 saw significant changes in the regulatory situation affecting both Citroen and other brands sold through Pendragon. Although Pendragon no longer stocks Citroen models, many consumers purchased Citroen vehicles on PCP (Personal Contract Purchase) or HP (Hire Purchase) finance agreements during this period.
Citroen Finance at Pendragon: How PCP/HP Works
When purchasing a Citroen through Pendragon, the dealership typically arranges for a car finance agreement from a lender. This process involves setting up either a PCP or HP plan that allows customers to make monthly payments over an agreed term. The dealer often benefits from a discretionary commission arrangement (DCA), where they receive a portion of the total interest paid by the customer as compensation for arranging the loan.
In these arrangements, Pendragon acts merely as an intermediary between you and the lender, facilitating the finance agreement but not providing it directly. You should understand that any complaints or issues related to your Citroen finance should be directed towards the actual lender identified in your agreement.
Finding Your Lender
To ensure you are addressing the correct party for a complaint about your Citroen finance agreement with Pendragon, locate the name of the lender on your contract. The finance agreement provided by Pendragon will clearly state which financial institution is responsible for funding the purchase and managing the loan terms. This information can typically be found in the documentation signed at the time of purchase or online through the lender's portal if you have one set up.
If you believe there are issues with your Citroen finance agreement, such as overcharging due to a DCA, it is important to address these concerns directly with the lender. You can complain to them free of charge without involving any third-party claims management companies. The FCA estimates that around 14 million agreements were affected by this issue from 6 April 2007 to 1 November 2024, resulting in an average overpayment of £700 per agreement and a total sum of £8.2 billion (FCA estimate).
When contacting your lender, it is essential to be clear about the nature of your complaint and provide any relevant documentation or evidence that supports your case. You do not need a claims management company to handle this process; reaching out directly to the lender can streamline the resolution.
Sources and References
- Financial Conduct Authority (FCA) estimates for affected agreements, overpayment amounts, and total sums.
- Motorists Legal Justice (MLJ.org.uk) guidelines on handling car finance complaints.